Syntekabio Issues 25 Billion KRW Convertible Bonds to Launch AI-Based New Drug Candidate Business

[Asia Economy Reporter Lim Jeongsu] Syntekabio, an artificial intelligence (AI)-based new drug development company, is set to fully launch a large-scale new drug candidate discovery and verification project utilizing AI supercomputing infrastructure.

On the 26th, Syntekabio announced that it raised investment funds from investors by issuing 25 billion KRW worth of unsecured private convertible bonds (CB). The nominal interest rate and guaranteed yield at maturity are 0% and 2%, respectively, with a maturity of 5 years. The conversion price was set at 13,459 KRW. The previous day’s closing price on the KOSDAQ market was 13,900 KRW, which is higher than the conversion price.

Syntekabio plans to use the raised funds for building the AI supercomputing center, research and development (R&D) pipeline preclinical trials, and the discovery and distribution business of new drug candidates.

Additionally, Syntekabio has decided to establish a local subsidiary in New York, USA, named ‘Syntekabio USA Inc’ to support the new drug candidate discovery business. Through the US subsidiary, the company aims to diversify profitability by distributing and selling verified new drug candidates, and to strengthen business competitiveness by expanding networks with global big pharma and biotech companies.

A Syntekabio representative stated, "With this investment, we will not only invest in building AI supercomputing infrastructure but also continuously promote large-scale new drug candidate discovery projects and accelerate sales activities based in the New York local subsidiary. Based on active investment and aggressive sales, we will achieve visible results as the only next-generation AI new drug development platform company in Korea."

Meanwhile, Syntekabio is an AI new drug development platform company combining AI and bio, and is the only KOSDAQ-listed company in Korea with supercomputer infrastructure. Through its proprietary AI platforms such as DeepMatcher, a synthetic new drug candidate discovery platform, and NEO-ARS™ which predicts cancer-specific antigens (neoantigens), the company pursues efficient new drug development.